Why be frugal???

[disneysteve]

Re: Why be frugal???

Years ago we were frugal because we had to be to make ends meet. Things have gotten better. Now we are frugal so we can save up to do other things. I save a few cents here and there on groceries so I can then buy better meat or groceries. I save money and put it in a Christmas Club so we can buy a few nice things instead of a bunch of junky things. I think our priorities have changed and we appreciate what we have.

This describes us pretty well, too. We choose to be frugal, though we could afford not to be. I don't think earning more money is the answer. If you doubled my income right now, we would still maintain our frugal habits. True happiness is being satisfied with what you have, not always wanting more.

[disneysteve]

Re: Why be frugal???

Here is my way of thinking, I am sure most of you will disagree, but it is my way. I always ask my myself "self, are you willing to pay $90/hr to sit on the couch and watch judge judy", since my work time is worth $90/hr and I am either working or relaxing, taking away from one to put in the other. Putting a price on my time helps keep me doing high value activities when I do work, and when I dont then I try to do things that I would be willing to pay $90/hr for. If you could be making $15/hr working then time spent not working you are essentially paying $15/hr for.

The author uses a similar approach in "The Tightwad Gazette", a book I think most here have read. When doing a frugal activity, she calculates the hourly rate of savings that activity generates. If it isn't a certain level, it isn't worth doing. For example, if baking your own bread takes 2 hours but only saves you $4, is it worth it to give up that 2 hours of your time? Probably not, though everyone's answer will be different.

Personally, I earn $70/hour on the job. However, I value my free time too, so I disagre with your point that it's costing me $70 to watch tv for an hour. I don't WANT to be working during that time. I want to be relaxing with my family watching tv. Could I be working more and earning more? Sure, but that wouldn't make me nearly as happy as what I'm already doing.

[vsjhoc]

Re: Why be frugal???

We choose to be frugal, though we could afford not to be. I don't think earning more money is the answer. If you doubled my income right now, we would still maintain our frugal habits. True happiness is being satisfied with what you have, not always wanting more.

No matter how disciplined you are, there still is a tendency to spend up to an increased income. I think you commented in another thread or blog that when your wife went back to work, some of your frugal habits fell a bit by the wayside. Nothing at all wrong with that. It's nice to have a bit more breathing room, a bit more of the good things.

I personally am getting pretty weary of being frugal and am looking for a new job. I traded a job I hated that paid extremely well, for a job I love that pays 75% less. The tradeoff has been too extreme because my quality of life has suffered. I'm just trying to find the happy medium. You know, that balance thing.

[PrincessPerky]

Re: Why be frugal???

........ True happiness is being satisfied with what you have, not always wanting more.

Nice quote

[Ima saver]

Re: Why be frugal???

Yes, I agree, that is a nice quote.

[genmed]

Re: Why be frugal???

Why be frugal?

Well I can say I don't do it to "just get by." There are a lot of people in that situation that don't have a choice -- it's be frugal or not make it. I hope everyone gets a choice. Keeping from "going broke" Because I have a choice giving up every possible "luxury" doesn't work for me.

I can also say we don't have a huge income a year. Working every possible minute of the day to get an extra $xx/he doesn't work for me either.

My reasoning is to just enjoy life. There are things I want, and I pretty much try try to keep those to things I need. For me a need is what's really going to make me happy, not glad not please but really HAPPY. A need for me is a nice hot cup of tea in the morning. Just drinking water doesn't cut it and having Starbucks Chai Latte sorry don't see the point. Maybe your need falls somewhere else along that continuum.

Another one of my needs is to have a house that I can walk out of to a beautiful view every day... that might be a state park, water or whatever. I don't want a mansion -- not worth the hassle of cleaning and even if I had a million dollars not worth losing my privacy to hire someone to come clean it. So a house like I have now in a bit different location is my dream. I'm not there yet. I'm not wiling to give up all my time to get it.

What I am willing to do is compromise between being frugal and working extra. My answer to "earning more money" was to by back to school for both a doubling in my hourly salary and doing something I love. DH works extra on occasion to make xx/hr. We invest a little. So maybe I am just doing a little bit of the is it worth xx/hr to do it. On the other hand -- yeah I am also frugal to a certain extent. I do it for time/money/stress/and environmental reasons. When it's all said and done.. yeah DH spends an hour or two a couple of days a week extra making more money and investments bring in a little extra money (increasing income) and I spend a couple of hours a week doing things to save us money (house maintenance, shopping comparison) etc.

I think everyone has a different level of what will make them happy -- maybe it is that BMW for you and maybe for your neighbor it's time being home with the kids. I also don't think "being frugal" -- minimizing expenses and "increasing income" -- investing, etc are mutually exclusive. A different combination of those approaches just work for different people.

[cschin4]

Re: Why be frugal???

I think the OP makes a good point. Being frugal is alot more than just saving a nickel here and there. It is a whole lifestyle which involves earning more, spending less, using your money wisely, etc. I think there are many people that could look at ways to earn more rather than just thinking of spending less.

[disneysteve]

Re: Why be frugal???

It is a whole lifestyle which involves earning more, spending less

I don't necessarily agree about earning more. For example, many couples are frugal so that mom can stay at home and not have to be out earning. There are lifestyle issues that are not just financial. Having one parent stay home isn't the best choice as far as earning money is concerned, but if it is a priority for you, you do what you need to do to make it work.

[PRICEPLUS]

Re: Why be frugal???

Warren Buffet is and he seems to know something about money. You can look for ways to MAKE money while finding ways to SAVE it. In terms of being successful and frugal he is my idol!

[Thrif-t]

Re: Why be frugal???

More money doesn't always make you happier. My DH and I don't make a lot of money but we are extremely happy and proud of all we have. I have been approached many times to move up in my career but I only work PT and that is all I want to work now with 3 little ones. My Dh has also been approached but our family life is very important to us and as long as we have all we need and can live comfortably that is what is important to us. And if being frugal helps us save more and have more time with our family we are all for that too.

[disneysteve]

Re: Why be frugal???

More money doesn't always make you happier. My DH and I don't make a lot of money but we are extremely happy and proud of all we have. I have been approached many times to move up in my career but I only work PT and that is all I want to work now with 3 little ones. My Dh has also been approached but our family life is very important to us and as long as we have all we need and can live comfortably that is what is important to us. And if being frugal helps us save more and have more time with our family we are all for that too.

I agree. Nearly 7 years ago, I made a lifestyle career change. I left a medical practice where I worked 6-7 days/week, was on call every other night, made hospital rounds at 2 hospitals, had office hours 2 nites/week, etc. I switched to a practice where I work 4-1/2 days/week, limited time on call, no hospital work. I took a sharp paycut and I and my family couldn't be happier.

[myfairlady]

Re: Why be frugal???

Eric Did you ever think that maybe, just maybe, living a simple, frugal, self substainable life is about valuing oneself? And is about respecting life as it unfolds naturally. Thats true happiness, and awareness. Not chasing it. How devaluing is that? It really saids alot about a persons level of maturity when they STOP trying to make happiness happen. You can live in peace, grace, and contentment. Now that's something to aspire to, that's value. Don't cheat yourself out of an opportunity to truly be fulfilled, learn how to be ok in life. Don't train yourself to medicate with something outside of yourself. So the beat goes on, and on, and it's a never ending saga to obtain your definition on happiness. And if all you're looking for in life is to just be happy, then grow up. There's more to life than just being happy. You see Eric, the people here are not slow, stupid, lacking self esteem, or just don't get it - they make it their mission to elivate themselves, through self control, and self awareness. And they enjoy doing it! Maybe you just don't get it. Maybe you think you have a better understanding on how to live life, and are wondering, wow what's with these people? what's their major malfunction? It's alright, it's a lack of understanding that's all. But if it's cramping your style - just visit another website. I hope reading this was a high enough valued activity for you. Gods speed Myfairlady

[BCHGRL]

Re: Why be frugal???

I have a totally different perspective on being frugal than most folks on this board. I don't understand the point of being frugal when so much of your financial situation is luck. Right place at the right time. I would agree that success is when luck meets preparation when it comes to your career. However, much of your financial situation is due to luck. My friend, who makes the same salary that I do, bought a home in 2003. It was the exact same floor plan and builder as mine. Her price? $125,000. I bought a home in 2005. My price? $220,000. The market changed so drastically between 2003 and 2005 that I have to pay $100,000 more for my home. BTW, I would have bought a home sooner but my identity was stolen, and it took a year to straighten out.

So what is does it matter if I save $100/week more on daily living than my friend when my mortgage is $700 higher than hers? Am I really getting ahead or just offsetting my bad luck?

That is why I would agree with Eric. There is only so much that you can cut back on without being miserable (yes, you can be happy with very little but the last time I checked housing is a necessity). Therefore, my earning potential must be increased to offset my bad luck, not my extravagent lifestyle.

[disneysteve]

Re: Why be frugal???

So what is does it matter if I save $100/week more on daily living than my friend when my mortgage is $700 higher than hers? Am I really getting ahead or just offsetting my bad luck?

That's an interesting question. I would ask, where does personal choice fall in all of that? You chose to buy the house you bought. When we bought our house, we could have spent 100K. We could have spent 200K. We could have spent 500K. All would have been in the same vicinity. We chose to spend 142K which was well within our budget at the time. However, I have friends and colleagues who bought around the same time who paid siginificantly more because they chose to. It had nothing to do with luck.

The same could be said for cars, the 2nd most expensive purchase most people make after their homes. I work in an office with 4 other people. I am the only one of the 5 still driving the same car as when I started there nearly 7 years ago. Two people are on their 2nd car. One is on her 3rd and the last is on his 4th. By keeping my car longer (over 8 years now, and I bought it used), I'm being more frugal than folks trading in every 3-4 years or less. That's a choice I've made. No luck involved.

Does luck enter the picture at all? I suppose so. When I left my job in 2000, I did not have any prospects for another position. I was out of work for a few months until something came along. A sales rep who knew me from my old job, gave my name to someone who was looking for a new associate. Some may call that luck.

[Broken Arrow]

Re: Why be frugal???

If I may wax poetic for a moment, luck also plays a part in the game of Poker, and yet, it's not the cards that lady luck has dealt us that matters, right? It's how well we can play our hand.